Feds say they won’t accept ‘blunt’ tax
Federated Farmers has slammed the Government’s proposed emissions farming tax.
National president Andrew Hoggard said what was supposed to be a research levy was now a ‘‘blunt tax’’ on the farming sector and it would affect everyone.
He said Kiwi farmers had the lowest carbon footprint per kilogram of product produced in the world.
‘‘That’s something we should be damn proud of.
‘‘We are at the top of our game internationally,’’ Hoggard said.
Hoggard spoke to about 800 concerned farmers at a meeting at Stadium Southland in Invercargill last week while more than 300 tuned in via livestream.
The meeting was held to discuss two big topics – the climate action partnership He Waka Eke Noa – and the new rules around intensive winter grazing.
Hoggard said the Government’s proposal to lower emissions would see the sheep, beef and deer sector’s production drop by 29% and dairy by 5.3%.
‘‘It will rip the guts out of rural communities.
‘‘The cost of living will increase and food prices too.’’
The latest Curia survey of 500 New Zealanders found 57% did not support taxing animal methane before other countries while 26% said they did and 17% were unsure.
Asked if the policy should go ahead if it meant reducing food production and increasing global emissions, support for pricing agricultural emissions dropped to less than a quarter.
‘‘It makes no sense for us to reduce production only for it to move offshore.
‘‘This proposal will increase global emissions.’’
Hoggard believed the Government’s target of lowering emissions 10% by 2030 was unrealistic and it should be revised to 2050.
He said destocking and planting the country in pine trees was not the solution.
‘‘The Government wants to achieve its target at all costs.’’
He said agricultural emissions pricing should be based on scientific targets for methane, viable mitigation options and there should be risk of emissions leakage.
‘‘There has got to be a review of the targets before we agree to any pricing.’’
Hoggard said if farmers were taxed then they should be rewarded for all their sequestration.
‘‘If the Government is going to penalise us, then it also needs to reward us.’’
Hoggard said kiwis were the most efficient food producers in the world.
‘‘But we can’t rest on our laurels, we have to continually improve or we will be taxed out of existence.’’
Hoggard said farmers had the support of the general public and he did not believe there was a rural and urban divide over the issue.
Farmers had encountered ‘‘dumb regulation after dumb regulation’’ over the past twoand-a-half years.
‘‘I’m done with being polite about it.’’
National MP for Southland Joseph Mooney, who attended the meeting, said his party would not accept the Government’s emissions farming tax.
‘‘It makes no sense to reduce production and increase emissions leakage.
‘‘We won’t accept one in five farmers going out of business.’’
Read about Feds response to intensive winter grazing rules on page 8.